Game stocks rise and fall with new releases... Krafton rises, Wemade falls

Krafton's New Title Enjoy (Source: Krafton)

This Year, The Fortunes Of Domestic Game Stocks Are Clearly Divided According To The Performance Of New Titles. Stocks Such As Krafton And Pearl Abyss, Which Benefit From Expectations For New Titles Or Improving Performance, Are Showing Strength While WeMade And Com2Us, Which Are Suffering From Poor Performance And Deficits In Their Main Games, Are Continuing A Weak Trend.

According To The Korea Exchange On The 25th, Krafton's Stock Price Has Risen By About 19.9% This Year. Boosted By The Popularity Of The New Title 'Enjoy', The Operating Profit In The First Quarter Increased By 47.3% Compared To The Same Period Last Year, Reaching 457.3 Billion Won, Recording The Highest Quarterly Performance Ever. Devsisters Also Saw A 34.4% Increase In Stock Price Due To The Update Effect Of The Flagship Game 'Cookie Run', And Pearl Abyss Continues To Be Strong With A 30.9% Increase Thanks To Expectations For The Release Of The New Title 'Red Desert'.

On The Other Hand, WeMade Recorded An Operating Loss Of 11.3 Billion Won In The First Quarter Due To The Advertising Cost Burden Of The February-Released 'Legend Of Ymir' And The Poor Performance Of The Blockchain Business. The Stock Price Fell By 30.1% Compared To The Beginning Of The Year. The Delay In The Chinese Release Of MIR M Further Weakens The Momentum For Stock Price Rebound.

Com2Us Also Could Not Avoid Disappointment. The Net Profit In The First Quarter Was Halved To 2 Billion Won, And The Performance Of 'Pro Baseball Rising' In The Japanese Market Did Not Meet Expectations, Resulting In A 19.5% Drop In Stock Price. Shift Up Also Fell By 17.8% During The Same Period Due To Lack Of New Title Momentum.

Experts Advise That It Is Necessary To Focus On Stocks With A Clear New Title Lineup And High Expectations. Ahn Jae-min, A Researcher At NH Investment & Securities, Predicted, "NCSOFT Plans To Release Six New Titles By Next Year Based On Cash Assets Amounting To 1.8 Trillion Won, And There Is A High Possibility Of Stock Price Recovery."

As The Game Industry Has A Structure Where The Direction Of Stock Prices Changes According To The Performance Of New Titles, It Is Evaluated That It Is Effective To Formulate Investment Strategies Focusing On Stocks With Stable IP Bases And Clear Expectations.